OSK Research Lowers MISC Bhd Target To MYR7.44

OSK Research lowers MISC Bhd's (3816.KU) price target to MYR7.44 from MYR8.20 after slashing its FY11 earnings forecast by 34%; it keeps a Neutral rating. "Plagued by ailing shipping rates amid a glut of vessels in the market, fundamentals for MISC appear to be further deteriorating," the house says. It adds, ailing rates coupled by the higher bunker fuel costs continue to keep MISC's liner, petroleum and chemical division in loss-making territory over the past few quarters. OSK also says, "nonetheless, MISC's offshore, LNG and fabrication businesses remain in the black and will continue to cushion earnings in the black." The stock is down 0.7% at MYR7.26.